Importance of Small Businesses and Start-ups in Social Economy

This report examines the different types of entrepreneurial ventures and their relation to the typology of entrepreneurship. It explores the similarities and differences between these ventures and assesses the impact of micro and small businesses on the economy. The report also highlights the importance of small businesses and start-ups in the growth of the social economy.

Entrepreneurship and
small business.

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................3
P2: Explore the similarities and differences between entrepreneurial ventures..........................6
P3. Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy. ...........................................................................................7
P4. Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................9
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers..........................................................................................10
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset...............................................................................................................................11
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship........................................................................................................................12
CONCLUSION .............................................................................................................................13
REFRENCES.................................................................................................................................14
Books and Journal.....................................................................................................................14

INTRODUCTION
Entrepreneurship is a term that set a project and task in a planetary industry, the proprietor or
individual of organization is known as Entrepreneurs. They are the one which are responsible
for their earnings and losses and contribution towards the capital and investment. There are
different kind of ventures entrepreneurial ventures which are classified into various concept or
categories. This report is going to explain about the different categories of ventures and also
differences and similarities among entrepreneurial ventures(Albort-Morant and Ribeiro-Soriano,
2016). The term entrepreneurship is mainly concentrating on maintaining small level business by
setting an person efforts and their capabilities towards the development. This context is also
going to explain about the enterprise activity and function of small level business as a EG
solutions PLC and MOMA foods company . Also, this report consider effects of small and
micro companies with their importance too. In this context there is explanation about
entrepreneur traits and skills that are much needed to direct a business effectively and that could
be done by identifying the attribute and personality of an businessman and their background and
also concentrate on each factors and component that influence the economy and society through
different activities and operational functions.
MAIN BODY
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurship: Directing a company or any task with the perspective to achieve the
opportunities and possibilities of market by developing and creating brimful and efficient use.
Entrepreneurship is the capabilities and preparation to enhance and improve and direct a business
in a very effective way. In relation with that it cater different advance innovation and
technologies to the society and community. This will involve different kind of operational
strategies and functions like planning, controlling, arranging the operations and improve and
enhance the strategies(Attaran and Woods, 2019).
Different kinds of entrepreneurship
Serial entrepreneurs: Serial entrepreneurs are those that are always ready to boost new
and creative ideas and innovation much rapidly and that makes them effective and give their
ideas and opinions into practical way. These things give them opportunities to start and develop

new task and ventures because of their capabilities and thought process. They are always finding
new ways and task although they are rely on only few ventures stabilize. Once a new task or
venture started its become their responsibilities to settled them effectively. They have that
capabilities and personality to bring new ideas and new modes in order to perform effectively
and get maximum positive outcomes for the business(Bukhval'd Evgenii, 2016).
Intrapreneurs: This kind of entrepreneurship define and present position of an person into the
company, In that they act and behave like an entrepreneur by involving and giving their much
innovative and creative opinions that form them to behave, act and assist as an enterpriser. They
have so much qualities and capabilities to perform and work in complex situation or uncertainty
by applying different kind of styles and techniques to develop and motivate other people and
handle that situation.
Owner-Managers: Owners and managers in the company are much capable and responsible to
handle or manage the complex circumstances and any activities that is connected to legal
activities,developing planning and different kind of policies and maintaining, tackle the
problems that is connected operations, activities and assisting workers and managers of the
company. The director and manager of the company are the one who manage and organise the
resources,develop and construct a groups and units and to allot a projects and task, to understand
and determine the performance of the entire group, unit that is there any requirement of change
or not.
Different entrepreneurial ventures.
There are several kind of accumulation in that entrepreneurship has classified to direct
and operate their operations and functions. These categories are explained below:
Survival venture: Survival venture are those that concentrate on possession and
retentive in the operations and activity of the business through satisfy and meet with financial
requirement of the company and operative capital. These kind of venture frequently modify their
activities and function to grow effectively and endure into the industry or in market by
minimising the value of the goods, workers termination and by compromising in the quality of
the product and the quantity also. There are few kinds of example that direct their operations in
UK amazon seller and many more(Demirel, Rentocchini and Tamvada, 2019). They direct their
business and functions at very small scale and mobilize accessible resources to satisfy and meet
with their requirements for their routine activities.

Lifestyle venture: Lifestyle venture is kind of entrepreneur that are directing or run their
company by following their way of living and their opinion regarding their personal experiences
. These kind of styles and ways of living could achieve by their perception and opinion of their
followers. The operations and function of the organisation are the replication of their way of
living and their thoughts and opinion.
Growth venture: Growth venture is kind of venture that chiefly concentrate on long
term perception and opinion and direct their project and task to endure in future for gaining
experience and in order to grow in the market and expand their business. They generally start
their business with high capital contribution and innovative and creative strategy of the business
, so that they can achieve so much advantages and benefits that is related to rivalry and huge
market share. The best appropriate example for growth venture is TESCO company, TESCO has
become world third largest retail company.
Relation with entrepreneurial typology
Small business entrepreneurship: These kind of business operate with down investment
of capital and they start their business by applying internal resources. These kind of business
generally manage with customer products and basic products in order to endure in the industry
and marketplace. In this the workers of the company can be their relatives or the proprietor itself.
Also, their liabilities and assets are much down, low and average earning maximisation. The
example of small business entrepreneurship is, local grocery shops, bakeries, poultry farm and so
on.
Scalable start-up enterprise: The scalable start-up enterprise are extremely innovative
and much creative in regards of providing and catering something fresh and creative towards the
community and society, They utilize and apply accessible technique and technologies in a very
effective and much innovative way in order to gain much appropriate and positive outcomes.
The target also involve or engage to improve the market share and the economy condition of the
nation. The appropriate and best example of scalable start-up enterprise is Facebook, Instagram,
that present or show extreme satisfaction of the customer and more growth(Dilli, Elert and
Herrmann, 2018).
Large company enterprise: Large organisation enterprise are chiefly operate and settle
down to provide huge and various variety of the goods and they have long term aim to
accomplish the satisfaction of their costumer so that they can perform better in the market with

better and amended reputation. They start their business with less or single variety of goods and
shifted to variety of the products according to the demands and requirements of the customer.
Consumer priority and their choice are the main motive and aim to accomplish their target and
survive in the market for long term but for developing in the market for long term they consider
and provide several feedbacks and summary. They also make their goods according to the
requirements and needs of the customer. For making customise goods they invest huge amount
or capital and develop amended quality resources in order to work effectively and survive in the
market for long term. Sainsbury's, TESCO, Unilever are the perfect example for large company
enterprise.
Social enterprise: Social enterprise are direct and work for social benefits by catering
required facilities and services to needful individuals. The main objective and target of these
enterprise is to cater much employment, services and fewer earnings optimisation. These kind of
enterprises gather their money and capital by the use of agencies, donations and from the
political authorities support (Edoho, 2016). The perfect and best example of social enterprise is
UNICEF, because they cater women and child support by inspiring and motivating them towards
their rights.
These all are chief and main kind of entrepreneurship venture and their major and basic
objectives is to improve and develop the society and provide best things that is much beneficial
and effective for them.
P2: Explore the similarities and differences between entrepreneurial ventures.
Similarities:
Survival venture: The chief and main target of this venture is to endure into the most
reputed marketplace to become much popular and run their business for long time of period. For
their development and to survive in the market for long time they applied and assure appropriate
utilisation of the resources.
Lifestyle venture: Lifestyle venture main target is to manage and handle their way of
living and personality into much impressive and effective way and utilise and enjoy the
satisfaction of more earnings.
Growth venture: Growth venture as the name states that, this concept is concentrating
on the growth aspect of the company and also focusing on expansion aspect that represent the
aims and objectives of the company for long term investment.

Difference:
Survival venture:
 Survival ventures collect their finances by their own or personal resources such as
friends, savings, family and many more(Kgoroeadira, Burke and van , 2019).
 The rate or flow of operations in this company is little complex because their procedure
of decision making are under control the owner of the business. Also, there are no
complexity take place into the company regarding decision making because of less
involvement of the workers.
Lifestyle venture:
 Lifestyle venture form or setup their assets or capital from baking by granting a loans or
from the financial establishment or institutions in the sort or regard of organisation loan
and they have to pay the interest also on majority (Elert and Henrekson, 2016).
 These kind of company run their work and operations from high authorities to low
authorities, because decision making process take so much of time because of extreme or
high activities or operations and uncertainties or complexity that are arise much rapidly
and frequently.
Growth venture:
 Growth venture term needed extreme financial requirements for their activities. For that
they take their finances from advanced and high institution to grant a loan which they are
required to evaluate and access for the security purpose.
 In the company, strategies, principles and policies are improve and evolve by high
authorities and also the centralised surroundings is followed because to destroy and
minimise the break or pause in the process of decision making.
P3. Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy.
Classification among small business and micro business.
Small and micro organisation are precious and much important for the economy
because they give their contribution towards the development and enhancement of the economy
They provide or cater their aspects of environmental and social towards the community that are
applied for the benefit and welfare of the individual. The manner or way they represent that how
much it advantageous for the economy are mentioned below:

Contribution towards GDP: From the above mentioned information, it represent the
growth in United Kingdom, GDP by giving their contribution towards the business of small and
micro, they also support in boost up and promoting improvement and evolution towards the
community. By catering goods and services on the basis of requirements of individuals. These
kind of things make positive and affirmative effects on the nation GDP. These small level
companies are shift or take step towards their improvement and also by diversification and
expansion of their business (Gaddefors and Anderson, 2017).

Employment: The organisation of Small and micro level have strive frequent development and
maturation in the economy. The upper mentioned graph development or growth represent the
comparability among the large level organisation and medium level organisation in relation with
involvement and engagement of workers. As talk about small level company, they cater
occupation to several unoccupied individuals that give their contribution towards the economy of
the nation and also raise the rates of employment in the country that is become much
advantageous for the development and growth of the nation. The individuals are not sitting idol,
they are much involve in activity and doing task with small level activities and also they give
their contribution with amended ideas and talent towards the company and economy. The graph
represent the micro and small organisation(Hashim, and Minai, 2018).
P4. Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Social economy: The term social economy is explained as the unit of organisation that
predate values of social, norms, culture while performing and directing their functions and
operations. They also operate for giving so much benefits towards the social improvement or
enhancement and they also do each accomplish able attempt or efforts to provide and give their
effective result for their advantage and for their welfare. They engage companies like
cooperative authority or cooperative mutual association and they assure about the policies and
privacy of the person.
Significance of small organisation for growth of social economy
Employment opportunities: Small level companies are become much important portion
in social economy because as they work on the large scale that cater employment or job for the
essential individuals. This will also cater a values towards the the growth of economy and also
towards the GDP growth. These things makes a affirmative and positive impacts of companies
on society and on the individuals and on individuals priority. Better job opportunities and
employment makes a hidden endowment or talent for the company that provide advantages and
so much welfare into quality and innovation.
Innovation: Innovation is much important for the growth and success of the market that
needed amended skills and much innovative thought process. Small level company applied their
much creative goods and services in order to give something much unique towards their
audience.

social purpose: Small company accomplish their social requirements by focusing on
healthy surroundings and the quality of goods. They also cater assistance to the individuals for
their advantages and benefits in term of any responsibilities.
P5: Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers.
Characteristic traits: Traits are explain as an person abilities and talents that form them
unique from the other. An individual has groovy traits or ability that are out of the box thoughts .
That make them much confident about their next step towards the future and profession and their
actions.
Characteristic skills: An individual having having much courteous and freehanded
behaviour is consider as skilled individual. The individuals that has much patience and
innovative ideas by which they deliver a clear communication and the individual are ready to
grant their orders or commands as a priority at workplace.
Difference between characteristics traits and characteristic skills:
Basis
Traits
skills
Elizabeth Gooch
 Elizabeth Gooch are
always comes with
new thoughts and
technique in order to
develop new and
unique software.
 She always consider a
few strategies to boost
up the motivation of
the other and taking
feedbacks to
understand the trends
and requirement.
 She is very good leader
and motivator and also
Tom Mercer
 Tom mercer is a
amended consultant
and they always
concentrate on their
living style of other and
what are their
requirements of daily
routine life.
 He always believe into
taking the feedbacks
and response from the
customer to know
about their needs and
requirement of changes
.
 He is very intelligent

she has a very good
communication skills.
and calm to understand
and manage the
situation according to
the circumstances and
requirement.
Distinguish between an entrepreneur and other managers
Entrepreneur Managers
An entrepreneur handle every operational
function with the possibilities of uncertainties
to take the business on broad and successful
level(Hoppe, Westerberg and Leffler, 2017)
Entrepreneur always concentrating on
accomplishing enlargement and changes of the
company and make the business more
effective.
Managers are always concentrating on
potential functioning of their fields so that
they can give better outcome.
Managers of the company are bound with their
obligation and roles of their position and they
have no scope to measured their thoughts
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
Entrepreneurial motivation and mind-set: This term explain the major skills and capabilities
of enterpriser that create and develop positive mindset and interest towards the work and task.
Examples of motivational drivers include:
Independence and flexibility: An entrepreneur needs freedom to operate with no
pressure and effectively because flexibility is much required as it explain the capabilities of the
person towards the work.
Power and control: This represent the feature of inspiration to enjoy the control and
power for their own . There are various component that bound these power. Power and control
makes a person stronger and much confident to work(Hsieh, Parker and van Praag, 2017).

Achievement: An person increase their motivation to accomplish the aims. This will
support the individual to work effectively and in a very efficient manner.
Creation of wealth: entrepreneur are always make them much stronger to take the risk
and handle the any situation positively that raise their possibilities to make wealth into market.
From the upper key campaign of person motivation , it has been it analysis the
requirement of these factors as an entrepreneur for their internal development and make them
stronger to handle the situation much effectively and in a very efficient way (Ivanovich, 2020)
Tom Mercer: It is important to have a good idea and then converting it into business and
entrepreneur. Tom Mercer was a curious person and had a idea that the person shared with the
friends . They told them about the advantages and need of a business related to oats. He was able
convince them. The motivation and trust is important to convert the idea into enterprise. The
same of done by Tom Mercer and that is the reason MOMA Food is successful. Also it is
important to get support of friends.
Elizabeth Gooch: in relation to nature of Elizabeth Gooch, she never like to get orders.
She was the one who likes to become boss of herself. This attitude of giving orders and having
own ideas that are followed by others. This gave rise to idea of opening her own business. This
shows that the entrepreneurship come from inside and the person that has capability can open a
successful business. As in the case where Elizabeth Gooch was able to open her own business
and was not controlled by others.
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship.
Tom Mercer: He was working in a consultancy firm in London. At that time he use to
think about new ideas and how he can start his own business. The person always thinks in that
way. Also there were financial problems due to which also Tom Mercer wants to start own
business. There were various challenges faced by the person and because of which he was eager
to start own business. The support of friends was important in his success.
Elizabeth Gooch: The first and foremost reason reason of starting her own business was
her nature. She was a person who do not like to get orders from others. Also after her marriage
she understood that it is important to support her husband financially. Also she was the one whop
likes to mange every thing by her own and not take help of others.

Poverty – It is an essential factor which motivates a person to became an entrepreneur. A
person with poor background have a dedication to earn more and more and provide their families
a good life to live. Because of their dedication they always have new and innovative ideas for the
success of the organisation. These skills helps them to be a good or excellent entrepreneur of a
company. So poverty helps a person to learn more and grow and grab best possible opportunities
for their betterment (Mugler, 2017).
Unemployment – It is also a huge reason for increasing opportunities for businessman
and women to became an entrepreneur as unemployment make them desperate to earn money for
themselves as well as families. The increasing unemployment appreciate them to start a small
business according to their skills and capabilities and engaged in them.
Culture – Culture sometimes provide for several ideas to start new business and be an
entrepreneur. A different culture of a person which is liked by various people can help to have
new and innovative ideas to earn money.
Family Wealth: Family wealth also helps a person to became an entrepreneur.
Sometimes a business owned by family member of the person is shifted to them which makes
him owner of the company and give opportunity to run the business with their unique and new
ideas.
School Dropouts – Sometimes not doing good in the school motivate a person to
perform their best in the real world. They drop school and decide to engage in a business to be
successful. Sometimes it proves to be a strong motivation in an individual to be an entrepreneur.
This can provide better understanding from an example of Bill gates who is a college drop out
and became founder of Microsoft company. He became an entrepreneur because he was never
interesting in doing 9 to 6 job and grab as much as knowledge and opportunities he can gain
from different sources (Nguyen, and Sawang, 2016).
So it can be observed from above that all these factors can encourage the
entrepreneurship in the market.
CONCLUSION
From the above discussion in the report it can be concluded that small and micro business
organisation plays a vital role in the economy of the country. Entrepreneurs are those personnel
who build future of the country. They provide for increase in infrastructure of a country and their
growth put a positive effects on the GDP and results in increase of employee engagement. This

report depicts necessary traits and skills required to became a successful entrepreneur of a
country.

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